A Tolerable Misstatement Is

question 25

Multiple Choice

A tolerable misstatement is:

• A) A percentage threshold, such as 2%, of variance allowed in net income.
• B) Zero as all accounts must represent 100% accuracy.
• C) A set amount, such as $100,000, that an account can be misstated before an auditor will call for a preliminary judgment.
• D) An amount set by the FASB based upon the industry the company is in.

---

Definitions:

Abbie Hoffman

An American political and social activist known for his leadership in the Yippie movement and protests against the Vietnam War during the 1960s and 1970s.

Bobby Seale

A co-founder of the Black Panther Party, an African American revolutionary group, in 1966.

Anti-War Movement

Social movements, usually in opposition to a specific war or military conflict, advocating for peace and cessation of conflict.

Cold War

A period of geopolitical tension between the Soviet Union and the United States and their respective allies from the late 1940s through the early 1990s, characterized by threats, propaganda, and other measures short of open warfare.